A bank's profitability affects its safety and soundness. Earnings can be retained by the bank, boosting its capital buffer, or be used to address problematic loans, potentially making the bank more resilient in tough times. However, banks that are losing money have less ability to do those things.
The Ohio Valley Bank Company underperformed the average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.
One important measure of a bank's earnings is return on equity, or net income (profit, essentially) divided by total equity. The most recent annualized quarterly return on equity for The Ohio Valley Bank Company was 5.96 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $6.4 million on total equity of $107.7 million. The bank had an annualized return on average assets, or ROA, of 0.65 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.